USL slumps over as board orders probe into loans to UB Group

Shares of United Spirits today fell by over 4 per cent as the Board of the company ordered a probe into loans given by it to UB Group companies as it posted a whopping net loss of Rs 4,488.77 crore for the financial year ended March 31, 2014.
United Spirits' stock settled the day 4.65 per cent lower at Rs 2,279.05 on the BSE. In intra-day, it plunged 6.87 per cent to Rs 2,226.
At the NSE, the scrip dropped 3.86 per cent to close the day at Rs 2,300.05.
In terms of volume, 1.21 lakh shares were traded at the BSE, while over 9 lakh shares changed hands at the NSE during the day.

The Board of United Spirits Ltd, now controlled by Diageo, has ordered a probe into the loans given by United Spirits to UB Group companies as it posted a whopping net loss of Rs 4,488.77 crore for the financial year ended March 31, 2014.
The company had reported net loss of Rs 105.03 crore in the fiscal ended March 31, 2013.

USL made provisions of Rs 1,012.75 crore in year ended March 31, 2014 on the account of 'doubtful loans' and exceptional item of Rs 3,235.73 crore on sales of Scottish subsidiary, Whyte and Mackay.
While ordering the probe for a "detailed and expeditious enquiry on doubtful loans", the company said: "The Board has directed the Managing Director to engage independent advisors and specialists as required for the enquiry.

"Certain pre-existing loans/deposits/advances due to the company and its wholly owned subsidiaries from United Breweries (Holdings) Ltd which were in existence as on March 31, 2013, has been taken into consider atom in the consolidated annual accounts of the company drawn up as of that date.